Additional Information
Book Details
Abstract
Irrigation is the dominant consumer of fresh water world-wide, accounting for as much as 80% of use in many water-short countries. Two issues dominate the problems in water resources management generally, and especially the management of irrigation systems: scarcity of water to meet competing demands, and scarcity of funds to finance operation, maintenance and renewal of existing facilities. Various international conferences, donor policies and academic papers have pointed to the contribution that appropriate irrigation service charging systems can make to both problems. This book is unique in that it connects policy objectives in water pricing with the practicalities of a setting up an irrigation water charging systems. It discusses the different types of water charging systems as well as the basis for quantifying and calculating the charges in the real world. Based on practical experiences in a range of countries , it also looks at possibilities for cost rationalizations and developing a broad range of revenue streams. The book concludes with a systematic explanation on how to design an irrigation water charging system - looking at assessment, billing and improving collection performance.
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| 1. Background to the Guidelines | 18 | ||
| 1.1 INTENDED AUDIENCE | 18 | ||
| 1.2 STRUCTURE AND CONTENT OF THE GUIDELINES | 18 | ||
| 1.3 CONTEXT | 18 | ||
| 1.4 DEFINITION OF TERMS | 19 | ||
| 1.5 LESSONS FROM THE LITERATURE AND CASE STUDIES | 20 | ||
| 1.6 USING THE GUIDELINES | 22 | ||
| 2. The policy environment | 24 | ||
| 2.1 STRATEGIC POLICIES | 24 | ||
| 2.2 IMPLEMENTATION POLICY | 27 | ||
| 2.2.1 Who assesses and collects the Irrigation Service Charges? | 27 | ||
| 2.2.2 On whose behalf are Irrigation Service Charges collected? | 28 | ||
| 2.2.3 Who to charge for irrigation services? | 29 | ||
| 2.2.4 Social objectives and service charges | 30 | ||
| 2.3 CHAPTER SUMMARY | 30 | ||
| 3. Setting the objectives for Irrigation Service Charges | 32 | ||
| 3.1 COST RECOVERY | 36 | ||
| 3.2 DEMAND MANAGEMENT | 37 | ||
| 3.3 INCREASING THE PRODUCTIVITY OF WATER | 37 | ||
| 3.4 CHAPTER SUMMARY | 38 | ||
| 4. The basis for irrigation charging | 41 | ||
| 4.1 CHARGING SYSTEMS AND WATER ALLOCATION PROCEDURES – IMPACTS ON WATER USERS AND IRRIGATION SERVICE AGENCIES | 41 | ||
| 4.1.1 Area-based charging | 43 | ||
| 4.1.2 Crop-based charging | 43 | ||
| 4.1.3 Volumetric charging | 43 | ||
| 4.1.4 Two-part Tariffs | 44 | ||
| 4.1.5 Quotas | 45 | ||
| Administering quota-based systems | 46 | ||
| Quotas and the need for volumetric measurement | 47 | ||
| 4.1.6 Tradable water rights | 47 | ||
| 4.1.7 Quotas, tradable water rights and revenue | 49 | ||
| 4.2 COMPATIBILITY OF OBJECTIVES AND TOOLS IN ISC | 49 | ||
| 4.3 PRECONDITIONS FOR IMPLEMENTATION OF IRRIGATION SERVICE CHARGE SYSTEMS | 49 | ||
| 4.4 CHAPTER SUMMARY | 50 | ||
| 5. Quantifying the charges | 53 | ||
| 5.1 HOW MUCH TO CHARGE | 53 | ||
| 5.1.1 Costs of service: Introduction | 53 | ||
| 5.1.2 Calculating Operation and Maintenance Costs | 55 | ||
| Historic costs | 55 | ||
| Best Practice Norms and Standards | 55 | ||
| Needs-based assessment | 55 | ||
| Performance Contracts | 56 | ||
| 5.1.3 Calculating capital costs | 57 | ||
| Replacement capital costs | 57 | ||
| Renewal accounting is linked to formal methods of asset management. It requires estimation of the timing and cost of replacing infrastructure, after considering the risks and consequences of failure of key infrastructure. The condition of all assets is regularly assessed and rated during field inspections. A risk rating is assigned to each asset, taking account of the time it would take to reinstate the asset and the lives/property/production potentially at risk if failure were to occur. The cost of replacing the different assets is estimated, to determine the cash flow required to fund replacement. The procedures are more labour-intensive and costly in the short-term than other methods, but allow a more accurate assessment of the long-term replacement costs. In Victoria State in Australia, the estimated capital cost under renewal accounting was 25% less than the corresponding amount under current cost accounting, because replacement costs were less than the original investment costs. | 58 | ||
| Non-replacement Capital Costs | 58 | ||
| 5.1.4 Resource costs | 59 | ||
| 5.1.5 Developing other sources of revenue in irrigation systems | 59 | ||
| 5.2 CHARGING WATER USERS | 61 | ||
| 5.2.1 Responsibility for setting/updating charges | 62 | ||
| 5.2.2 Setting varying charges | 62 | ||
| Special provisions | 63 | ||
| 5.3 CHAPTER SUMMARY | 63 | ||
| 6. Implementing an irrigation charging system | 67 | ||
| 6.1 ASSESSMENT | 67 | ||
| 6.1.1 Categories of assessment | 67 | ||
| 6.1.2 Carrying out assessment | 67 | ||
| 6.1.3 Checking the assessment | 68 | ||
| 6.2 BILLING AND PAYMENT | 68 | ||
| 6.2.1 Timing of billing | 68 | ||
| 6.2.2 Billing and payment | 69 | ||
| 6.3 ACHIEVING GOOD REVENUE PERFORMANCE | 70 | ||
| 6.3.1 Reasonable transaction costs | 71 | ||
| 6.3.2 Improving transparency in budgeting and spending | 71 | ||
| 6.3.3 Improving transparency in service delivery | 73 | ||
| 6.3.4 Improving collection | 74 | ||
| 6.4 SANCTIONS FOR NON-PAYMENT | 75 | ||
| 6.5 MONITORING AND FEEDBACK | 76 | ||
| 6.6 CHAPTER SUMMARY | 76 | ||
| 7. References: | 79 |